US president Donald Trump Let ZTE reopen in Exchange of Fine and Security Guarantees. The Chinese vendor has to pay a $1.3 billion fine, agree to purchase US equipment and overhaul its management team. Now to Comply with US Mandate, ZTE Replaces its CEO and top Executives.
ZTE Replaces its CEO and top Executives and Paid $1 billion fine
ZTE has already paid a $1 billion fine and has agreed to place $400 million in escrow to cover any future misdeeds. In addition, the company agreed to allow a U.S. team to monitor the firm’s compliance with U.S. prescribed punishments.
Another part of the agreement with the current administration requires ZTE to replace its Board of Directors and top executives. The former all resigned and a new eight-person Board is in place. The company’s new CEO is Xu Ziyang, who had headed up ZTE’s German division. The manufacturer also reached within the company for its new CFO, CTO, and HR chief.
ZTE, China’s second largest telecom company is currently on life support. Without crucial hardware components, ZTE’s factories and most of its 75,000 employees are sitting idle. The ban stops U.S. companies like Google, Qualcomm, and Intel from doing any kind of business with ZTE. By some estimates, ZTE uses components from American suppliers is up to 90 percent of its products.